Member-initiated early retirement pension This award would be payable to a firefighter who has sufficient service to qualify for a pension, who has reached age 55 but not age 60, and who voluntarily chooses to retire with immediate payment of benefits. (The fire and rescue authority have not determined that he/she should be retired on grounds of ill-health or in the interests of the management of the service.) The first part of the calculation uses the basic formula, i.e. annual pension = 1/60 x pensionable service x final pensionable pay but then a reduction based on the Scheme Actuary’s guidance is applied to reflect the cost of early payment. For example, a firefighter who retires at age 58, having completed 10 years’ pensionable service with final pensionable pay of £27,000 and a relevant actuarial factor (at the date of issue of this guide) of 0.689, would have entitlement to a pension assessed as – (1/60 x 10 x £27,000) x 0.689 = £3,100.50 a year Part of the annual pension (after reduction) can be commuted to provide a lump sum if the firefighter wishes.